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KNOWLEDGE & RESOURCES

Business Cash Flow, Working Capital and MIS Resources

Understand why profit, cash and available borrowing can move differently. Explore short-term cash forecasting, working capital, pricing and management reports, with links to the tools and advisory services that support business decisions.

Explore related guides and tools

Resources are educational. Verify current laws, notifications and requirements against official sources for your particular facts.

Practical business decisions

Why can a profitable business still run short of cash?

Sales recorded on credit can improve accounting profit before collections arrive. A cash plan needs opening cash, expected customer receipts, supplier payments, taxes, salaries and finance commitments.

Common questions

Which number should I review first?

Start with cash available today, overdue customer balances and the payments due in the next eight weeks.

What does a working-capital cycle show?

It relates the time in stock and customer credit to the credit available from suppliers. The cycle is an indicator, not a funding forecast.

Is a budget the same as a cash forecast?

No. A budget records expected income and expenditure; a cash forecast focuses on payment and receipt timing.

Does an increase in sales always increase available cash?

No. If collections slow or inventory grows, additional sales can increase the cash tied up in operations.

What should an owner ask for in a monthly MIS?

Ask for sales and contribution, overdue receivables, stock movements, cash outlook and unusual variances, with assumptions clearly explained.

Practical example (fictional): Illustration: A profitable invoice of ₹1,00,000 is payable in 60 days while suppliers must be paid in 15 days. The business may face a temporary cash gap despite the reported profit.

Continue with the right resource

General information only. Check applicable law, official updates and the facts of your situation before acting.